Question: Inventory management - Multiple replenishment opportunities (3) A supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of cameras. The

Inventory management - Multiple replenishment
Inventory management - Multiple replenishment opportunities (3) A supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of cameras. The price schedule is Quantity purchased fewer than 525 at least 525 Price per unit $80 $75 Suppose the monthly demand at a retail store that buys from this retailer and resells is 175 units. The supplier charges a fixed cost of $180 per shipment. The cameras are expected to sell well for multiple seasons, so multiple replenishment opportunities are possible. If the holding cost is 5.5%, and the retailer implements periodic review to achieve 80% service level, how much should it order it it has 750 units in stock? (Note: Use the table from the lecture notes, and choose the closest answer.)

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